Hannity today on health care:
There is an answer to the health care system. Every American should have an HSA and a catastrophic policy. A private medical savings account…I would make it mandatory. Everybody. And if you don’t have it you’re covered under the catastrophic policy. The answer is free market solutions always work.
Sigh. This is the problem with unraveling the garbage Rush and Hannity spew. It’s not just lies, it’s that they pile up unsubstantiated and outright bizarre claims on top of one another until they’re impossible to argue with.
There are so many points wrong with this statement as a “solution” to the health care crisis.
Where does he get his Health Insurance Account (HSA)/catastrophic insurance (High Deductible Health Plan, or HDHP) plan? Oh — according to the Treasury, it already exists.
Let’s parse out Hannity’s pronouncement bit by bit:
Every American should have an HSA.
So what is an HSA? The Treasury says:
A Health Savings Account is an alternative to traditional health insurance; it is a savings product that offers a different way for consumers to pay for their health care. HSAs enable you to pay for current health expenses and save for future qualified medical and retiree health expenses on a tax-free basis.
The money rolls over, so it’s not a “use it or lose it” proposition, and it’s tax-free, so that’s good. It earns no interest, so that’s bad.
Everyone “should” is an important part of his statement, but we’ll get to that in a bit, as he’s going to clarify it.
Hannity:
and a catastrophic policy.
That’s what the Treasury defines as a “High Deductible Health Plan” or catastrophic coverage (at least $1,100 deductible for singles and $2,200 for families).
So for families, you have to be able to afford
- $12,000 average health insurance premiums for family coverage
- $2,200 on top of premiums
- an out-of-pocket total up to $11,200 (per the Treasury’s HSA site FAQ)
- and on top of that sock money away into an interest-free HSA for smaller medical expenses.
How is that any different from buying your own insurance? All it is is a partner to carrying insurance. Buy high-deductible insurance, and then put money into an HSA instead of a regular savings account to plan for medical expenses.
If you have a job that provides insurance whose coverage qualifies you to use an HSA, it may be a good deal.
Hannity:
I would make it mandatory.
Ay, there’s the rub. If your job doesn’t provide insurance, you’re still right back where you started. You still need to buy your own coverage, and under the Hannity plan, not only are you forced to buy insurance, you’re forced to put money into an HSA.
Hannity:
and if you don’t have it [the money in your HSA, I assume], you’re covered under the catastrophic policy.
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